Hey guys, it's Sasha Tesla has had an insane month going up from just about kissing the 100 line at the end of last year to Smashing through the 200 barrier in February. This run-up is the fastest increase in value in Tesla's history, surpassing the massive growth in stock price in 2019 and 2020, and a lot of people feel like they have missed out. There's this very common investor misconception that if a stock has gone up, you're already too late, you've missed the boat, or there will be a whole other set of people fortune teller dweebs who will tell you that what goes up must of course come down and they will draw lines on charts which show you magic resistance and support levels based on joining any two random dots. So the same numbnuts who were busy shorting Tesla with everything they had at 116 dollars and now doubling down at 200? and is there a reason why Tesla has climbed by 100 in a month and a half? Is there Perhaps something more than just dumb retail investors who don't know what they are doing buying this dog? because if you watch a company be valued way way above where you think it should be valued and the stock just keeps on going up, Is it Definitely because the stock market is irrational? Is it? Definitely because there's so many people out there who don't know what they're doing? Or maybe just maybe there is a reason why it's going up that you are missing in poker.

There is a term for an inexperienced player. Those people are called a fish. A fish. will often sit at a table blissfully unaware of how little they understand about the game before they go and lose everything.

And there is a saying in poker that if you don't know who the fish at the table is, the fish is you. The record-breaking run up in price for Tesla in January and February came after a record-breaking run down in December when the stock price halved in just a month. The fact that Tesla is so popular with options Traders and Leverage gamblers I think it's the number one stock for all of that stuff means that the stock is particularly susceptible and vulnerable to high volatility moves that exacerbate themselves if the stock price moves down a significant amount. Leverage positions get margin code.

Option prices move very sharply and the stock price is forced even lower at the same time. The exact opposite happens on the way up. What if I showed you this same exact chart of Tesla's share price, but the last two months instead looked like this. A lot of people's opinion on whether they should buy Tesla stock would probably change just because of what happened in the last two months.

The current price would be the same, the company would be the same, but it shows just how much how much way too much attention people pay to pass the stock price movements when making their decisions about future investing decisions. My take is that Tesla is still massively undervalued by the market at 200 and I am going to share several major factors that I think may make the market agree over the coming months and years. The first Catalyst I want to talk about is a less obvious One charging PT has arrived and created an absolute frenzy around AI Social media has exploded. Investors are drooling all over AI investment opportunities.

Interestingly enough, Elon Musk was one of the early investors in Open AI the company behind Chad GPT and you can read a great Deep dive on chat GPT and Fortune Magazine right here. Uh, let me look it up on my Readily app. So Chad GPT only turned up a few weeks ago. but the company is already valued at 29 billion dollars and Microsoft has just piled a 10 billion dollar investment into Openai and immediately integrated it into Bing and Microsoft Office Tragic is being compared to Major disruptors like Netscape the first popular web browser and if Chai GPT is Ai's Netscape Navigator moment, it is one that very nearly never happened.

because Openai always killed the project months ago. a bit like Tesla In the early days, running a cash burning startup is hard when you constantly need to pile more money into the furnace. By the way, you can go and read Fortune and readily yourself along with over 6 000 other magazines and newspapers. Readily has sponsored this video and you can get two months free by using my link in the description or in the pinned comment there is no minimum term.

you're free to cancel anytime. So if you want to get access to Fortune Wired Money Week Forbes Bloomberg Markets Time Magazine some other car magazines that they're all in there. you can discover new titles based on the topic, read newspapers without all the annoying paywalls and ads and you can download all of these onto your device to read on the plane or when you don't have signal. I Am personally a big fan of Classic American Magazine and he's to have to try and find the physical copy in the shops I Bought it for years, but it's right here in a readily app as well along with hundreds of other car titles.

So if you want to go and read your favorite magazines the moment they come out all in one place for just one monthly subscription, remember to use my link in the description and you will get two months free. and if you don't like it for whatever reason, you can cancel whenever you want. So talking about AI investors are having their eyes opened to how AI is going to foundationally transform every aspect of their lives and one of the biggest AI players in the world right now is Tesla In fact, Tesla and Open AI are linked at the hip and share much of their foundations. Very few people I think actually are aware of this.

Elon Musk was one of the original founders of Open AI putting money into the project in 2015, but Elon then left the project later because it was a conflict of interest with AI software being developed at Tesla and do you know who else was one of the founders and Draco pathy. He worked on setting up Open Ai and worked there for three years before joining Tesla to build Tesla's AI platform and after five years of building the groundwork for FSD Andrea then took us about school last summer and in the last few days he's joined Open AI again. Tesla's FSD is getting better fast and Tesla is the only company in the world working on a fully AI based General driving solution. This is critically important to understand while every other competitor is busy trying to make autonomous driving use, pre-map cities with pre-mapped routes which is not scalable or practical and does not account for edge cases, doesn't really serve any other use case other than a robo taxi in a very narrow, geofenced area.

With constant need to update those maps for every small temporary change and Road layout at the end of last year, FSD was made available to everyone in the United, States and Canada and is now installed in 400 000 Tesla cars already being used every day Those cars are gathering date that is then used to improve the AI which is allowing Tesla to pull further and further into the lead while nobody is even trying to compete. FSD still needs time to Iron Out Edge cases By no means perfect. It is going to take time to improve, but it is really getting there. Just go and watch the videos, go and look at what's happening and there will come a Eureka moment a lot sooner.

I Think that some people expect when Tesla's full. self-driving consistently drives more safely than the average human Maybe by an order of magnitude. Probably won't happen this year, maybe sometime next year, maybe the year after. but it's coming and there is nobody even remotely close to Tesla In terms of that, Ai and the first mover advantage means nobody can get close because Tesla is currently collecting millions of miles of data to train their AI every day.

and without the data, it is nigh on impossible to build a an AI platform using neural. Nets because there's nothing to use to build your decision and like what we saw with Chad Gbt, there will come a time a lot sooner than many people think based on the speed at which AI is currently progressing when suddenly you can have your car drive you, giving you back a couple of hours of time every single day that you're sat there holding the steering wheel staring into the distance. A couple of hours you never had before. How much would you pay for having an extra couple hours a day at the moment? FSD costs fifteen thousand dollars as one-off fee.

That is an insanely good deal in my opinion for that. but when you compare it to what you would pay for the couple of hours, I have a funny feeling that price is going to go up and will become somewhat subscription based. and then most other car manufacturers will be tripping over each other, signing deals to have Tesla's FSD available in their cars too. And the margins on that FSD software and the total revenue potential is a completely different ball game to the small margins that existing car manufacturers have on their car sales.

While Tesla is doing an Apple at the moment and building out an ecosystem with a truly groundbreaking product, the traditional manufacturers are still busy figuring out which sort of sliding keyboard they should design next year. In two weeks time, Tesla is going to present a new generation car platform at their investor day. Tesla's model 3 Model Y platform have already taken the World by storm. Tesla Model Y has just been announced as a number one car sold in California the US's biggest car market and this production is increasing in Texas and Berlin.

It is fast rising to that number one spot in countries around the world. in 2022. Tesla Model Y become the fourth best selling car in the entire world, not an EV car the fourth best-selling car. And this is a car that costs sixty thousand dollars.

We'll see what Tesla announces on March first, but rumor has it that it will be the long-awaited lower price compact car. and if Tesla brings out a category killer in the space currently occupied by the golf and the Toyota Corolla I have a feeling a lot of investors will begin reworking their forecast and it's on what production Tesla will look like. Over the next few years, there is a growing rumor that Tesla will be announcing a Factory location imminently. This has suddenly heated up in the last few days it's long over.

June Canada and Mexico seem to be the Two Front Runners with Indonesia and Brazil seemingly falling behind in the priority list, and in the last few weeks, Tesla announced major upgrades to the Nevada Factory to produce more batteries and the semi-truck and an expansion in Austin for the production of the Cyber truck. Later this year, production is really ramping up. so Tesla already has a category killer in the premium sedan and small SUV categories with a model 3 in the model. while dominating, even as production is scaling, the Cyber truck is arriving to take over the truck and Suv space.

while we just learned that the only real competitor Ford have stopped production of the F-150 Lightning after discovering problems with their battery packs. Bit of a problem last week. GM and Stalantis spend seven million dollars each on adverts to advertise cars that don't exist. Stalantis ran an ad titled premature Electrification during the Super Bowl poking fun at other EV companies while advertising a truck that they say will not be available for at least two years.

Talk about the competition prematurely coming every single year. You couldn't make this up and now Tesla is targeting a killer product in every single category major car category that exists. They are then going to sell software as a service with their FSD product on top of that, which absolutely destroys any argument for Tesla's evaluation being compared to traditional car companies that are not doing this. It's a bit like comparing Apple's valuation to the sum of Nokia Blackberry Motorola when Apple were building their ecosystem and saying well Apple makes most of their revenue from selling iPhones So it's dumb to Value it as more than the next 10 mobile phone companies put together and despite all of this information being right in front of everyone's face, Tesla is trading at 200 hundred dollars a massive discount versus the last few years which is the same price that it was back in December 2020.

And I personally think that's an absolute steal because it is substantially lower than my valuation and that ultimately is the only thing that matters to me. I Do not care at all what the past share price movements were up or down in making my investing decisions because they are irrelevant when you look at the longer term and the longer term being actual genuine long term. Because I do appreciate that many investors who think they're long-term get upset when the stock price moves up or down on any given day. I see a stock which I think has close to a 300 potential upside which is in my opinion in Bonkers territory.

and I Know some people think that it is impossible for Tesla to become the most valued company in the world just like that. Probably would say the same thing when Apple was already several years into selling the air groundbreaking product, but this is precisely why Tesla is the biggest position in my portfolio and I hope that I will have time to add to that position this year while the share are selling at a massive discount. If you found this video useful, don't forget to smash the like button for the YouTube algorithm. Thank you so much for watching I Really appreciate it and as always I'll see you guys later Foreign.